The Social Security crisis: 3 in 5 Americans say funds will be depleted by 2035

Over 4 in 5 Americans (81%) are concerned that Social Security funds will be significantly diminished by 2035, according to an Atticus survey over 1,000 Americans, The 2035 Crisis: Public Fears Over Social Security.

“Our findings indicate that 63% of people believe Social Security funds will be completely depleted by 2035 due to the ongoing imbalance between income and spending,” said Adi Sachdeva, part of the creative team at Atticus. “Trust fund reserves are diminishing rapidly, and 81% of respondents are concerned about significant benefits cuts.”

Nearly 3 in 4 Americans (73%) claim that the depletion of Social Security funds will directly impact their financial planning and retirement strategies, according to Atticus, a public interest law firm that helps Americans in a crisis secure aid from the government.

While it’s projected that Social Security could face significant benefit cuts or even become insolvent, the Social Security trust fund announced in May that benefits may not have to be reduced until 2035, which is one year later than previously forecast.

“Our study shows that 61% of Americans are not confident the current government’s actions will effectively ensure that Social Security funds are not depleted,” said Sachdeva. “Although the political pressure is significant and candidates’ positions on Social Security are likely to influence voting behavior—64% of the respondents reported this—the study also found a prevailing skepticism about whether the government will intervene in time.”

Related: Social Security, Medicare funds will last until 2025, but Congress ‘needs to act’: Report

Nearly 2 in 3 Americans (64%) claim their voting decision in November for the upcoming Presidential election will have at least some connection to the candidate’s stance on Social Security.

“Congress can and should take action to extend the financial health of the trust fund into the foreseeable future, just as it did in the past on a bipartisan basis,” said Social Security Commissioner Martin O’Malley. “Eliminating the shortfall will bring peace of mind to Social Security’s 70 million-plus beneficiaries, the 180 million workers and their families who contribute to Social Security and the entire nation.”

In light of this dilemma, “employers can play a crucial role in helping employees mitigate the potential impact of Social Security depletion,” said Sachdeva. “Given that millennials and Gen Z are the most proactive in increasing savings and retirement account contributions, employers should focus on enhancing their retirement plan offerings, promoting higher contribution rates, and providing financial literacy programs. Offering personalized financial advice and encouraging long-term savings strategies can also empower employees to better prepare for retirement.

“Gen X is poised to be the most affected by Social Security’s depletion, with 81% indicating that it will directly impact their retirement planning,” said Sachdeva. “Employers should provide Gen X employees with options to adjust their retirement age, offer flexible retirement savings plans, and allow for catch-up contributions. Tailored financial planning resources can help this generation prepare more effectively for retirement amid Social Security uncertainties.”